Adenuga’s Conoil slashes FY’25 dividend by almost half as profit plummets 75%

Conoil Plc has reported a sharp contraction in its bottom-line performance for the full year ended December 31, 2025, with net profits plummeting by 75.7 percent year-on-year (YoY).

Despite navigating a highly volatile energy market, the downstream oil marketing giant faced intense macroeconomic headwinds that heavily compressed its margins, leaving investors bracing for a leaner dividend payout.

The audited numbers filed with the Nigerian Exchange Limited (NGX) show that Conoil’s board proposed cutting the final dividend from N3.50 in 2024 down to N2 per share (a 42.9 percent drop).

According to the Register of members, no shareholder of the Company other than Conpetro Limited held more than 5 percent issued shares of the Company as at December 31, 2025.

Conpetro Limited held 516,298,603 units or 74.40 percent, while other shareholders held 177,653,514 units or 25.60 percent.

Conpetro Limited is wholly owned by the Nigerian billionaire businessman Mike Adenuga Jr. (the chairman of Conoil). Through Conpetro Limited, Adenuga maintains an indirect controlling interest of 74.4 percent in Conoil Plc, making it the majority corporate shareholder of the major downstream petroleum marketer.

In the company’s recently released full year results, its revenue decreased by 6.6 percent to 301.720billion from N323.127billion.

Profit before tax (PBT) of N2.677billion as against N11.004billion in the corresponding year represents a decline by 75.7 percent. Conoil Plc profit after tax (PAT) also printed lower by 75.4 percent to N2.159billion from N8.773billion. The company’s share price has remained flat at N194.

The company’s proposed dividend of N1.387billion for FY’2025 represents a decline by 42.9 percent when compared to N2.428billion in FY’2024. Conoil Plc shareholders fund decreased by 0.7 percent to N39.220billion from N39.490billion. Conoil Plc is pulling back the reins on its cash distributions compared to year 2024. Management’s decision to downsize the payout highlights a defensive positioning to protect the balance sheet after escalating finance costs severely eroded the company’s net profit margins.

For income-focused equity investors, this double-digit cut serves as a sobering reminder of how current macroeconomic and high-interest rate environments are filtering directly down to bottom-line shareholder value.

The company’s earnings per share (EPS) decreased by 75.2 percent to 314kobo from a high of 1,264kobo in 2024.

This pronounced pullback points to underlying pressures on the company’s net profitability, likely exacerbated by volatile supply-chain costs and a challenging domestic operating environment.

For shareholders, this compression in per-share earnings sharply resets valuation expectations and stands to recalibrate market sentiment on the NGX-listed stock, turning all eyes toward management’s upcoming strategic adjustments.